Emerging Markets Update - InFocus: South Africa, Nigeria, Ghana & Africa-wide Outlook
A study produced by African Union is predicting Africa’s oil producing nations to be the worst hit in terms of revenues with Nigeria and Angola losing up to $65bn of income | The study also suggests that 20 million jobs are at risk across the continent as economies shrink in 2020 due to the impact of COVID-19.
South Africa Following Fitch’s decision to cut South Africa’s credit rating further into junk status, the Rand set a new record versus the U.S. dollar trading at 19.3446 yesterday before recovering almost 5% on positive global sentiment | The state owned power utility Eskom is expecting a $156m hit to revenue during the country’s three week lockdown period | Meanwhile, the South African Reserve Bank (SARB) has advised in its Monetary Policy review that the economy may shrink 4%.
The West African nation has requested loans totalling $6.9bn to combat the impact of COVID-19 with the World Bank, IMF and AfDB all involved.
The Finance Minister Ken Ofori-Atta has called for China to do more to help ease the debt burden as African economies struggle as a result of the pandemic | Mr Ofori-Atta stated ‘African debt to China is $145bn or so, over $8bn of payments is required this year so that needs to be looked at’. This follows his previous comments about a 1.5% shrinkage of the Ghanaian economy.
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